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How to Create Your NFT Loyalty Program?

How to Create Your NFT Loyalty Program?

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With globalization and the expansion of e-commerce, competition has gone from being regional to global, increasing customer acquisition costs abruptly.

The best way to do that is by increasing the lifetime value of their user base and harnessing loyalty. This is often done through a tier-based rewards system: the more frequently a customer purchases something or interacts with a given brand, the more benefits they get, and in some cases, they can “level-up” to a certain kind of VIP status.

By integrating NFTs to their loyalty programs, brands can go deeper and create deeper experiences being a step ahead of what the people will request in the near future.

NFT Loyalty Program

Benefits of NFT as a Loyalty Rewards

The problem with traditional loyalty programs today is that many of them are restricted to redeeming points in exchange for brand-specific rewards. Most rewards have expiration dates, little flexibility, and cannot be transferred. On top of that, some loyalty programs out there still rely on physical cards, and can’t seamlessly integrate into the digital world.
Before thinking in the integration with NFTs, you should always consider what traditional loyalty systems already exist to transfer the system that creates loyalty to the form of NFT.
Basic Formula: You give a lot to the brand so they compensate you a little.

SHOPX has a perfect proposal to integrate NFTs into your loyalty program.

Shopx 1024x380
At its core, SHOPX is a no-code platform that helps you to integrate blockchain to your business in an easy way. Inside their suite of products they have ReserveX, a system that helps you to create easy-to-use token gated experiences for both the consumer and the creator.
When arriving on a token gated item on the seller’s page, all a buyer needs to do is connect their Web3 wallet and that’s it. If eligible the product will be made available for purchase.
How do you know which product you are eligible for? The brand can select which items the NFT owner may claim for free, discounted or some other benefit.

In this example you can see the partnership of The Mag Park with SHOPX.

They are known for their baseball caps that have grown to a point of popularity where they sell out instantly and then are often resold for three to four times their retail price on the secondary market. This in theory sounds good, but in reality, the releases became victim to resellers using bots to automatically purchase large orders in seconds, leaving true collectors empty-handed.
With the ReserveX platform, specific products are token gated, and those interested in buying need to have the NFT to access the product. Quantity is also limited as well as redemption use — mitigating the use of bots and getting the product in the hands of fans.
The first drop by Mag Park using blockchain integrations saw over $250 thousand USD in revenue generated in 24 hours, an 80% conversion rate of holders buying the product, and an additional $100 thousand USD generated in the following 60 days from royalties of secondary NFT sales.
 

Caption: Special shout-out to Arthur Parkhouse for the Information

Example of Using NFTs in Loyalty Programs

An interesting use case could be applying NFTs to the Loyalty Program of a business that relies on network-effects, let’s use Airbnb as an example here. Today most businesses give you benefits when you spend a lot or recurrent money on them.
Then Airbnb could give you an NFT when you register on the platform and as you start booking on their platform on a recurring basis they can give you discounts, the possibility to have a call with the owner of the house, free days of stay, among others.
The cool thing here is that then, you could sell it to another person and Airbnb will get a % of that transaction called royalty. It’s a win-win for everyone.
Example of Using NFTs in Loyalty Programs

Starbucks NFT Loyalty Program

One of the latest news is that Starbucks is launching its own loyalty program in form of NFT called “Starbucks Odyssey”. The new experience combines the company’s successful Starbucks Rewards loyalty program with an NFT platform, allowing its customers to both earn and purchase digital assets that unlock exclusive experiences and rewards.
Starbucks NFT Loyalty Program
Once logged in, members can engage in Starbucks Odyssey ‘journeys,’ a series of activities, such as playing interactive games or taking on fun challenges to deepen their knowledge of coffee and Starbucks. Members will be rewarded for completing journeys with a digital collectible ‘journey stamp’.
For a better customer experience, they are not even calling it NFTs, they are calling it “Stamps”. This also reflects that’s the beginning, people don’t need to understand the underlying technology they will use because of the benefits.

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Author

Andres Tole 150x150

Andrés Tole

I am the founder of Authenticity, an NFT agency that focuses on helping people to develop successful NFT projects. I am a young entrepreneur who has helped companies around the world take advantage of digital marketing and a retail investor who has invested in cryptocurrencies with a high degree of success. I am a blockchain and digitalization enthusiast.

See author's posts

Author

Andrés Tole

Andrés Tole

I am the founder of Authenticity, an NFT agency that focuses on helping people to develop successful NFT projects. I am a young entrepreneur who has helped companies around the world take advantage of digital marketing and a retail investor who has invested in cryptocurrencies with a high degree of success. I am a blockchain and digitalization enthusiast.
Andrés Tole

Andrés Tole

I am the founder of Authenticity, an NFT agency that focuses on helping people to develop successful NFT projects. I am a young entrepreneur who has helped companies around the world take advantage of digital marketing and a retail investor who has invested in cryptocurrencies with a high degree of success. I am a blockchain and digitalization enthusiast.

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